Key Stats for LIN Stock
- Year-to-Date Performance: 17%
- 52-Week Range: $388 to $511
- Valuation Model Target Price: $623
- Implied Upside: 25%
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What Happened?
Linde plc stock is up about 17% year to date, recently trading near $499 per share as investors responded to record earnings, a record $10 billion backlog, and 2026 guidance that reinforced earnings durability despite mixed industrial conditions.
This week’s fourth quarter results were the primary catalyst. Linde reported sales of $8.8 billion, up 6% year over year, operating profit of $2.6 billion with a 29.5% margin, and EPS of $4.20, up 6%.
The company also delivered record annual EPS, operating cash flow, and operating margins alongside a 24.2% return on capital.
Management guided 2026 EPS to a range of $17.40 to $17.90, implying 6% to 9% growth with flat base volumes at the midpoint and a 1% FX tailwind.
CEO Sanjiv Lamba said, “From my perspective, this is the strongest strategic position Linde has held during my tenure,” highlighting backlog strength and disciplined execution.
Institutional activity remained constructive. Westerkirk Capital increased its stake by 300.5% to 6,992 shares valued at about $3.3 million, while CenterBook Partners boosted its position by 391.2% to 22,236 shares worth about $10.6 million.
Zeno Equity Partners raised its stake by 20.0% to 82,837 shares valued at $39.4 million, making Linde roughly 18.3% of its portfolio and its second-largest holding.
At the same time, Comgest Global Investors trimmed its position by 1.2% to 870,459 shares valued at $413.5 million, and Fiera Capital reduced its stake by 0.9% to 358,063 shares worth $170.1 million. Institutional ownership stands at approximately 82.8%, underscoring broad portfolio conviction.
Revenue is projected to rise from about $34 billion in 2025 to roughly $45 billion by 2030, reflecting steady mid-single-digit growth supported by electronics demand, clean energy project execution, and long-term on-site contracts rather than cyclical swings.
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Is Linde Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 5%
- Operating Margins: 32%
- Exit P/E Multiple: 27x
Revenue growth near 5% reflects continued expansion in advanced electronics, including semiconductor fabs where gas intensity increases at smaller nodes, alongside clean hydrogen and decarbonization projects that make up roughly two-thirds of the record backlog.
Margin expansion toward 32% assumes pricing in line with globally weighted CPI, productivity actions including restructuring, and operating leverage as large projects move from construction into revenue generation.
Management indicated 2026 margin expansion is expected to exceed its long-term 30 to 50 basis point annual range.
Backlog conversion remains central. The company expects $2.5 billion to $3 billion of projects to start up in 2026, converting secured capital into recurring earnings.
Semiconductor demand in the U.S. and Asia, continued space launch growth supported by dedicated investments, and tuck-in acquisitions that contribute roughly 1% to sales provide additional earnings support this year.
Based on these inputs, the model estimates a target price of $623, implying about 25% total upside over roughly 3 years and an annualized return of about 8%, indicating the stock appears modestly undervalued at current levels.
At current prices near $499, Linde appears positioned for steady earnings compounding in 2026, supported by backlog execution, pricing discipline, semiconductor-driven gas intensity, and continued capital returns rather than aggressive revenue acceleration.
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